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SBI Rejects Apple Pay Tie-Up, Cites UPI MDR to Offset Infrastructure Costs
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Moneycontrol•01-10-2026, 15:44
SBI Rejects Apple Pay Tie-Up, Cites UPI MDR to Offset Infrastructure Costs
- •State Bank of India (SBI) evaluated a partnership with Apple Pay but decided against joining the ecosystem for now, according to MD Rama Mohan Rao Amara.
- •The upcoming 0.4% merchant discount rate (MDR) on UPI transactions above ₹2,000 will help SBI offset infrastructure costs, not generate significant revenue.
- •SBI is technically prepared for the new UPI MDR rules taking effect on October 15, noting that 96% of P2M transactions are exempt and customers will not be charged.
- •The new charges will partly offset SBI's substantial investments in infrastructure, cybersecurity, and fraud risk management, estimated at ₹15,000-₹20,000 crore for the industry.
- •SBI, with a 27% market share on the remitter side of UPI, believes the MDR will encourage further investments and innovation in value-added services.
Key Questions Answered
State Bank of India evaluated a potential partnership with Apple Pay and looked at the commercial terms before making a considered internal decision not to participate in the ecosystem for now, though management noted that this stance could change in the future.
SBI expects the upcoming 0.4% merchant discount rate on UPI transactions above ₹2,000 to help partially offset massive infrastructure investments, particularly in cybersecurity, risk management, and fraud prevention, rather than serving as a revenue generator.
Yes, 96% of person-to-merchant UPI transactions are up to Rs 2,000 and remain completely exempt from the charges, and customers are not supposed to pay any fees.
